Tax List Decline Deepens Gloom Of Hartford Finances

Tax List Decline Deepens Financial Gloom In City

Topping off a week of bad financial news for Hartford, city officials disclosed Friday that the value of taxable property fell in 1991 -- the first such decrease in 15 years.

City officials had expected the decrease, and accounted for it earlier this week in projecting a nearly $42 million budget gap next year if the legislature adopts Gov. Lowell P. Weicker Jr.'s budget. This has prompted city politicians to start talking about raising taxes for 1992-93.

"It puts into question the `no property tax increase,' " said Councilman Nicholas J. Fusco. "The city of Hartford has to get the message out that our state government is going to have an impact on the city."

Not since 1977 has the value of the city's grand list of taxable property decreased, said William Schmidt, assistant city assessor. That decline was short-lived, as the next year's grand list increased as a result of property revaluation.

The 1991 grand list of $6.413 billion is about 1 percent less than the previous grand list -- a reduction of $66 million in the value of taxable property. The 1991 list would result in about $2.5 million in lost tax revenue.

Not surprisingly, the biggest reduction in the grand list of taxable property, $54 million, came from real estate. Real estate now is valued at $5.3 billion.

The reduction in the real estate area also can be attributed to the settlement of tax appeals of the 1989 property revaluation and the razing of buildings. In addition, two large properties that had been taxed now are exempt: the former Hartford Times building, now owned by the city, and Avery Heights, a South End senior citizens' housing complex, which recently won a court decision for tax-exempt status, Schmidt said.

Besides real estate, the value of the city's list of motor vehicles decreased by 8 percent, or $12 million. The total value of motor vehicles now is $140 million -- representing the third consecutive year of decline in this area.

The personal property list -- office furniture, fixtures, computers and machinery -- grew by only $327,000. The list's value now is $920 million.

"Every company is buying less and doing without," Schmidt said, regarding small growth in the list.

The grand list's decline follows very slow growth that was first reflected in the 1989 list. That continued with the 1990 list, which grew by only 1.4 percent.

The decline also is in marked contrast to the heady years of the late 1980s, when the city's grand list was growing by 8 percent to 9 percent.

It is another dark shadow in the gloomy financial picture that officials drew earlier this week in analyzing the effect on Hartford of the proposed state budget. They believe the city would face a nearly $42 million gap next year if Weicker's budget is adopted. Much of that would result from a decrease in state reimbursement to towns and cities for general assistance welfare. Now, the state reimburses 90 percent; under Weicker's proposal reimbursement would be about 67 percent.

Hartford has, by far, the largest welfare caseload in the state. Even though eligibility requirements for recipients would be tightened under Weicker's proposal, not enough people would be dropped from the caseload to make up the difference in the reimbursement rate, said Ana Maria Garcia, social services department director.

"It is not a wash for us," Garcia said.

The proposed lower reimbursement may affect the city's finances this year, if the state approves an April 1 start date. That could mean a $4 million loss to a budget that already is running a $650,000 deficit.

Deputy Mayor Elizabeth Horton Sheff said cutting services would be one way to close the gap.

"But more than that, it's going to be cutting services and an increase in the mill rate," she said.

"We're going to have to make sure we're communicating with the people out there," said Democratic Councilwoman Henrietta S. Milward. "If it means we can't support the services you want, or if it means looking at a tax increase."

However, Democrat Fernando Comulada said a tax increase is not an option.

"The options are cutting services or layoffs, and those are very painful solutions," Comulada said.

Other council members said the city must ask municipal unions for help in closing the gap.

"It may be furloughs, it may be a golden handshake, it may be co-pay [of medical benefits]. It may be forgoing a previously negotiated raise," Fusco said.

The city has not yet settled contracts for many unions, including firefighters, teachers and supervisors. In addition, negotiations on the parks and public works union's contract, which expires at the beginning of July, soon should begin.

Tony Guida, that union's president, said the union wants to just focus on the new contract.

"Once we go into negotiations, it will be up to the membership," Guida said.

And People for Change Councilman Eugenio Caro said he is not optimistic about union concessions.

"Laying off 500 people, that's what the picture presents," he said.

If the state budget, as Weicker has proposed it, is approved, other aspects of city life would be affected, leaders say. If people are dropped from the welfare rolls, they say, they won't be able to pay rent, and that will lead to further abandonment of apartment buildings. Crime would increase, they say.